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Household vegetable demand in the Philippines: Is there an urban-rural divide?

Author

Listed:
  • Maria Erlinda M. Mutuc

    (Department of Agricultural and Applied Economics, Texas Tech University, Lubbock, TX 79409-2132)

  • Suwen Pan

    (Department of Agricultural and Applied Economics, Texas Tech University, Lubbock, TX 79409-2132)

  • Roderick M. Rejesus

    (Department of Agricultural and Resource Economics, North Carolina State University, Raleigh, NC 27695-8109)

Abstract

A Nonlinear Quadratic Almost Ideal Demand System (NQAIDS) that accounts for censoring and endogeneity problems is used to assess the vegetable demand behavior of rural and urban households in the Philippines. Detailed household consumption data for a number of vegetable commodities are utilized in the analysis. The results show that most of the expenditure and own-price elasticities of the vegetables analyzed are near or larger than unitary in both rural and urban areas. For majority of the vegetable commodities examined, only the expenditure elasticity is significantly different between rural and urban households. On the other hand, own-price and cross-price elasticities of most vegetables do not significantly differ between rural and urban households. The disaggregate vegetable demand elasticities in this study, as well as the insights from the rural|urban comparisons, provide valuable information that can be utilized for the analysis and design of various food-related policies in the Philippines. [JEL Classification: R21; Q11] © 2007 Wiley Periodicals, Inc. Agribusiness 23: 511-527, 2007.

Suggested Citation

  • Maria Erlinda M. Mutuc & Suwen Pan & Roderick M. Rejesus, 2007. "Household vegetable demand in the Philippines: Is there an urban-rural divide?," Agribusiness, John Wiley & Sons, Ltd., vol. 23(4), pages 511-527.
    • Handle: RePEc:wly:agribz:v:23:y:2007:i:4:p:511-527
    DOI: 10.1002/agr.20137
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    1. Abiodun O. OTUNAIYA & Adebayo M. SHITTU, 2014. "Complete household demand system of vegetables in Ogun State, Nigeria," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 60(11), pages 509-516.
    2. Tan, Andrew K. G. & Yen, Steven T. & Hasan, Abdul Rahman & Muhamed, Kamarudin, 2014. "Household Expenditures on Vegetables in Malaysia," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 46(4), pages 1-19, November.
    3. Tomoki Fujii, 2014. "Is urban food demand in the Philippines different from China?," Working Papers 18-2014, Singapore Management University, School of Economics.
    4. Go, Eugenia, 2020. "Over Land and Over Sea: Domestic Trade Frictions in the Philippines," ADB Economics Working Paper Series 611, Asian Development Bank.
    5. Eugenia Go, 2022. "Overland and Oversea: Domestic Trade Frictions in the Philippines," Asian Development Review (ADR), World Scientific Publishing Co. Pte. Ltd., vol. 39(02), pages 75-118, September.
    6. Eugenia Go, 2020. "Trade implications of transport cost in the Philippines," Economics PhD Theses 0320, Department of Economics, University of Sussex Business School.
    7. Obisesan, Adekemi, 2021. "Households’ Demand for Fruits and Vegetables in Nigeria: Panel QUAIDS Approach," 2021 Conference, August 17-31, 2021, Virtual 315858, International Association of Agricultural Economists.

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    More about this item

    JEL classification:

    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • Q11 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Aggregate Supply and Demand Analysis; Prices

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